This is from Leon's Musings
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...twelve month performance for most NZ equity funds was in the 4~5% range with only a few breaking 7% and going out to 3 years their performance drops around another 3%. With 6 month cash term deposits up around 4.6% it’s probably no wonder funds are languishing.
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This is before all the crazy fees imposed upon the people. I feel that the problem with local New Zealanders and these retirement fund schemes is that they give too much credit to the government that they got good people managing their life savings. They obviously do not, if they've under performed against the actual rate of inflation, which is obviously higher than the local bank Term Deposits, since more interest has been created off higher rated loans (mortgages, credit cards, etc.).
Yes this naturally implies that government incentives do not always benefit the working, middle class. In this case, these Kiwisaver funds are likely to really benefit the government borrowers and the few large mutual fund outfits in New Zealand.
"
...twelve month performance for most NZ equity funds was in the 4~5% range with only a few breaking 7% and going out to 3 years their performance drops around another 3%. With 6 month cash term deposits up around 4.6% it’s probably no wonder funds are languishing.
"
This is before all the crazy fees imposed upon the people. I feel that the problem with local New Zealanders and these retirement fund schemes is that they give too much credit to the government that they got good people managing their life savings. They obviously do not, if they've under performed against the actual rate of inflation, which is obviously higher than the local bank Term Deposits, since more interest has been created off higher rated loans (mortgages, credit cards, etc.).
Yes this naturally implies that government incentives do not always benefit the working, middle class. In this case, these Kiwisaver funds are likely to really benefit the government borrowers and the few large mutual fund outfits in New Zealand.
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